Firstly let me express my appreciation to State Department and Mansfield Center for giving me opportunities to learn invaluable knowledge and especially thank to my Coordinator, Ms Leslie Jenson, who has arranged all meetings with respective department to achieve the goals for me. I am very pleased to share what I have learnt at my time (22nd April to 25th April) in Billing where headquarter of FIB is located.
Every bank always concern on their lending but bank always has to lend not only their main source of revenue but also supporting to economy. The 90% of failure of Banks are caused by bad lending. So it is really important for bank to have good credit policy and risk measurement and well understanding of customers’ nature. Credit administration Team of FIB in Billing explained how they conduct financial analysis based on Moody’s Spread, 14 years historical data of industry analysis and importance of “5” C of customers. They have system of risk rating for each customer and based on risk rating, they categorize loan for their customers and set the pricing to them. What I have learnt that all of their loan’s tenure are more than 10 years and they shared with me how they minimized exposure of risk and interest. In my country, we are lending not more than one year and we are facing complains from our customers that our loans don’t support effectively for their business’s growth. FIB shared how to minimize interest rate exposure that can be happened for long-term loan. It won’t happen to us now but we will face this problem when markets are liberalized and competitive gradually.
Our Banking industry in Myanmar is just opened up and it really sounds to me how to develop our bank’s credit policy that we don’t have proper policy yet and industrial risk analysis where the data can collect and refer from Risk Management Association (RMA) and how to train our people to get understanding of analysis of loans. Most of our lending is heavily relied on owned collateral basic and FIB said how cash flow statement is important for repayment ability. FIB said that they have given loan limit to each officer and how Credit Team monitors their loan based on market’s situation. It makes management to decentralize delegation authority since we are practicing every single loan to come to management for approval. According to FIB’s policy, loan shall need to take approval from board credit committee for the amount that is beyond certain amount. In my mind, I am thinking to develop our policy to place immediately by adapting some policy in here and take action approval step follow by. I really appreciate to let me attend their board’s credit meeting and it shows how management put their points of views differently by using videoconference. I see again how technology makes people to work effectively.
Another area what I have learnt is financial management. Mostly are same with our system such as budget and actual performance analysis, external and internal reporting system and audit. I shared to them that we still keep our books in manual also since we don’t have electronic law yet. Most interesting what I learnt from them is function of Asset Liabilities Committee Meeting and management dashboard. That are really giving direction to management where bank is driving and which areas need to focus to invest or increasing or decreasing lending activities or strategic agenda to be developed.
I got great opportunities to sit with vice chairman of FIB, Mr Scott and he falls in love with our country after visiting to our country and he points how Myanmar Banking Industry needs to develop and have opportunities for bank like us. He has shared to me how to run family business own bank and how corporate governances are important for shareholders. He advised to implement corporate governance to be enforced and he shares how he develops that policy at his bank. This is one of my priorities to adopt that policy as per our local’s rules and regulations. I really admire how FIB participate in community and they have been contributing two of their profit to community. This is how we have to develop our corporate social responsibilities at our bank for our community and our people.
Finally I met with marketing team and they explained how they develop their products by understanding of customers’ need and how they try to update with technology for their services improvement to their customers. Their mobile banking concept gain well success in regional and they advised to go directly to mobile banking instead of internet banking since it will compete to our competitors. I have learnt how they keep maintain their brand awareness in public and how they launch new products in the market to get customers’ awareness. Furthermore, they advise me how to structure and prepare for capital market that will have in 2015 in our country and it is really invaluable asset to me.
In conclusion, I feel that I have achieved what I have aimed from this program and I really appreciate to management and all teams of FIB who are very kind, friendly and willingly to share their experience and knowledge to me. We are looking forward to having business opportunities to coordinate together in near future.